Financial stocks lift FTSE 100

Monday 16th March 2009, 9:26AM GMT.

Financial stocks lift FTSE 100 Barclays led a rise on the FTSE 100 this morning as the index climbed 1.37 per cent to 3,801.02.

The bank is attempting to stave off government intervention by selling off part of its fund management arm. The move boosted Barclays’ shares by 12.01 per cent by 08:34 GMT.

Insurers also continued to rise on the UK’s benchmark index as investor confidence in financial stocks returned.

Legal & General was up by 7.44 per cent, while Prudential was up by 5.18 per cent and Aviva climbed 3.48 per cent.

However, mining stocks were trading lower, with BHP Billiton down 2.32 per cent, Rio Tinto falling 2.26 per cent and Cairn Energy dropped by 0.8 per cent.

Last week, the FTSE 100 enjoyed its best week so far this year, rising 6.9 per cent.

However, many are still concerned the rally will be proved to be a dead cat bounce, with further falls expected, or at least a loss of the current momentum.